Taiwan's Hon Hai Precision Industry Co. and its Japanese subsidiary Sharp Corp. will stop supplying liquid crystal display panels for televisions to South Korea's Samsung Electronics Co. from next year, industry sources said Wednesday.
Hon Hai and Sharp are planning to shift supply of the product, manufactured by Sakai Display Products Corp. in Osaka that is jointly operated by Hon Hai and Sharp, to reduce any impact on their business, the sources said.
Falling LCD panel prices have hit Sakai Display Products. The company tried to raise its product prices but is believed to have failed to reach an agreement with Samsung.
Sharp set up Sakai Display Products in 2009 with the aim of mass-producing large LCD panels, but the firm struggled to find stable customers and dragged down Sharp's business performance. Hon Hai and Sharp now each hold a 37.61 percent stake in the company.